Jump to content

125 discrimination testing - when and how to fix = ?!

Guest Happy Actuary

Recommended Posts

Guest Happy Actuary

Can anyone please clarify the correction methodology and timing? I realize that a failed test c/n/b corrected after year end, and that all deferrals become taxable to the HCE's. That's fine.

My question is the option one may have for correction < year end. Can you simply impute enough W-2 income as needed to pass the test (a much better solution)? If so, where does it say that you can do this? If this is true, this method appears at odds with the first, i.e., how would anyone know if you "ran the tests" on 12/29/03 or 1/3/04?

Sorry I am so confused!!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...